What is the difference between a trust and a guardianship?
A trust and a guardianship are both legal tools used to transfer or manage assets, but have a few major differences. In California, a trust is a legal agreement between a grantor, (a person who creates the trust) and a trustee, (a person or organization that manages assets for the benefit of someone else). With a trust, the grantor will transfer ownership of their assets to the trustee. This allows the trustee to manage the assets according to the wishes of the grantor, usually after their death. A guardianship, on the other hand, is a legal appointment made by a court to protect the interests of a minor child or mentally incapacitated person. In this case, the guardian will be entrusted with the legal authority to look after the minor or mentally incapacitated person and make decisions in their best interests with regard to their medical care, education and finances. The primary difference between a trust and a guardianship is that a trust is a financial arrangement where assets are transferred by a grantor and then managed by a trustee, while a guardianship is a legal appointment to protect the interests of a minor child or mentally incapacitated person. In addition, a trust is usually established while the grantor is still alive, while a guardianship is usually established after the death of the parent of the minor or mentally incapacitated person.
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